Exit Strategy means different things to different people. Its meaning for you is only limited by your desires and your imagination. It may mean divestiture of ownership by sale, succession (family or management), ESOP, or IPO. Or, it may be an interim transition strategy to expand services or markets, relocate the company, reposition the company in its industry or in another industry, divestiture of non-core businesses, insure career advancement (by management without ownership interest), etc.
Without a doubt – it is a departure from your present state of affairs to something new and different. It is an evolutionary process in the life-cycle of your business and personal endeavors which will enrich the quality of your life and promote an uncompromised and financially secure future.
In many ways, the exit strategy process is similar to building your dream house. You have wonderful ideas of what you want it to look like and the amenities it will contain.
So, what’s the first step? Would you call the trades people together (the mason, carpenter, roofer, electrician, plumber, drywaller, painter, landscaper, interior decorator, etc) and say “build my dream home!” Of course not. For those trades to be effective, they require a “blueprint” which specifies, in detail, the part they will play in this process, what is required of them, and the date(s) by which their “results” or “deliverables” must be provided.
Who provides this blueprint? An architect, of course – someone who has intimate knowledge of each trade and the regulatory and code requirements that must be met as part of the process. Without the architect, this process is overwhelming and most likely unachievable.
What “trades” are utilized in the exit strategy process? Every interim and final Exit Strategy requires the services of a team: three attorneys (general business, estate, and tax), a CPA, personal or commercial banker, financial planner, stockbroker, insurance agent, benefits advisor, business valuator/appraiser, business broker or investment banker, real estate agent, and a general and/or specialized business consultant. Imagine the cost of bringing all these experts together in one room!
Aside from the cost, conflicts inevitably occur among experts. For example, it has been our experience that financial planner, CPAs, and tax attorneys often have different approaches and conflicting recommendations, as well as contrasting opinions on the appropriate combination of strategies to employ. It is only through teamwork that it is possible to capture a client’s desired outcome in the shortest period of time.
Effective Exit Strategy planning and execution mandates integration of four advisory services:
• Business operational and financial consulting
• Business, personal, and transactional tax planning
• Market Opinion
• Business and personal financial services
The problem is finding an “architect” knowledgeable of each trade, the regulatory and code requirements that must be satisfied, and is a source capable of providing the required integrated services in conjunction with a client’s business broker or investment banker.
We only know of one such “architect” – our Business Services group of companies. We employ individuals with credentials and certifications, and experience in key required disciplines. We have integrated relevant aspects of all these disciplines to provide you a unique, unduplicated proprietary approach to focusing your life efforts. Thus, you are enabled to achieve your desired results in the most efficient, effective, tax-advantaged manner possible.
Our comprehensive approach to wealth management is complemented with a vast array of independent, non-proprietary product solutions “tailorable” to the investment challenges presented by each client’s unique estate, retirement, and succession planning circumstances and objectives.
